TC09680 - [2025] UKFTT 01332 (TC)

A supply of goods or services is an exempt supply if it is of a description specified in Part II of Schedule 9 and it is not of a description specified in Part II of that Schedule: s 31(1) VATA 1994.

Part II of Schedule 9 is organised into groups. Group 7, so far as material, provides as follows:

“Group 7— Health and welfare

Item No.

…

9

The supply by—

(a)

a charity,

(b)

a state-regulated private welfare institution or agency, or

(c)

a public body,

of welfare services and of goods supplied in connection with those welfare services.

Notes:

…

(6)

In item 9 “welfare services” means services which are directly connected with—

(a)

the provision of care, treatment or instruction designed to promote the physical or mental welfare of elderly, sick, distressed or disabled persons,

(b)

the care or protection of children and young persons, or

(c)

the provision of spiritual welfare by a religious institution as part of a course of instruction or a retreat, not being a course or a retreat designed primarily to provide recreation or a holiday,

and, in the case of services supplied by a state-regulated private welfare institution, includes only those services in respect of which the institution is so regulated.

…

(8)

In this Group “state-regulated” means approved, licensed, registered or exempted from registration by any Minister or other authority pursuant to a provision of a public general Act, other than a provision that is capable of being brought into effect at different times in relation to different local authority areas.

Here “Act” means—

(a)

an Act of Parliament;

(b)

an Act of the Scottish Parliament;

(c)

an Act of the Northern Ireland Assembly;

(d)

an Order in Council under Schedule 1 to the Northern Ireland Act 1974;

(e)

a Measure of the Northern Ireland Assembly established under section 1 of the Northern Ireland Assembly Act 1973;

(f)

an Order in Council under section 1(3) of the Northern Ireland (Temporary Provisions) Act 1972;

(g)

an Act of the Parliament of Northern Ireland.”

Note 8, which defines “state regulated”, was inserted into VATA 1994 by the Value Added Tax (Health and Welfare) Order 2002 (the “2002 Order”). The 2002 Order was made by negative resolution.